Exchange Rate Now!

This time round, even the International Monetary Fund has chipped in to say that the Chinese Yuan should be adjusted (re-valuated).

The proponents – United States and India. The opponents – Only China.

The proposition of proponents – Re-valuating the Chinese Yuan will solve the trade imbalance – currently, the United States vs China deficit stands at about 62.4%. This is staggering as much of the imports for Chinese products into the United States translates into revenue for the Chinese. And as long as the revenue streams come trickling in, the China economy will continue to grow – at the expense of the United States.

The cold war between the United States and Russia had already passed with the collapse of the Berlin was in 1989. This time round, the economic cold war between United States and China will be more prolonged (more…)

As we step into this new year, we left behind 2009 in what was a tumultous year where exchange rate is concerned. We stepped into year 2009 where oil prices declined steeply, before a sharp upturn occurred in the later part of the year. We stepped into 2009 where the world financial markets was reeling from bank collapse before stock market climbed in the later part of the year.

We stepped into year 2009 when the US Dollar was strengthening against all other major currencies and the US Dollar finished on a strong note.

Here are some of the possible predictions for year 2010.

1. US Dollar continue to appreciate – Year 2010 might be another good year for US Dollar, at least in the early part of the year. All the Detroit big 3, Dubai World and Banks will need more time to prove their stability. Therefore, it is expected for US Dollar to be the preference of parking of wealth.

2. South African Rand – Year 2010 promises to change the whole of South Africa with the arrival of the FIFA World Cup. With high expectations, the Rand would be a hopeful punt with forex traders and for the South African themselves, hoping that (more…)

While most currencies depreciate against the US Dollar in Year 2009, the Chile Peso has gained some 20% against the US Dollar. While the strengthens the purchasing power of Chileans, it does not do any good for Chilean exporters as their products are now more expensive and less desirable. It is a known fact that a strong peso brings down import prices, contributing to lower consumer prices.

As recent as Nov 2009, 1 US Dollar trades at 485.0 Chilean Peso (CLP) while things are quite different just in late August 2009 when the exchange rate of Chilean Peso against US Dollar was weak (1 US Dollar = 562 Peso).

In the past 2 weeks, the US Dollar has strengthened against major currencies including the Chilean Peso (CLP) (more…)